According to a study by Rostrum Research, 51% of respondents said that they do not trust retailers any more than traditional financial services providers, while 38% indicated that they trust banks and retailers to the same degree. 

Only 11% of Brits trust retailers more than High Street banks to handle their financial affairs.

Mark Houlding, CEO of Rostrum Research, said: “New entrants are looking to shake up the UK financial services market.

“Supermarkets and new types of financial services providers are attempting to take market share from the established players – but our research suggests that winning the hearts and minds of consumers will not be easy or straightforward.

“That said, by combining well-known brands with an established store network – a handful of these retailers, such as Tesco (33%), M&S (21%) and John Lewis (20%), are making progress in encouraging customers to trust their financial services offerings, particularly the all-important current account product.

“However, it remains to be seen whether these new players are able to really take a large share of the market.”

Price plays an important part in the selection process for consumers as household budgets feel the strains of the current economic climate.

40% said that price was the most important factor, with loyalty to an existing retailer coming second (29%).

Houlding added: “Supermarkets and high street giants have a wealth of experience when it comes to understanding their customers and encouraging consumer loyalty.

“However, our research shows that the perceived difference between selling consumer goods and financial products is significant and there is a long road ahead for retailers.

“Despite these challenges, the potential for this market represents a big opportunity for retailers who get it right.”